Evaluation of Alternative Materials for BIW Design

Stephanie Dalquist

Seward Matwick

Bill Nickerson

8 April 2002

Mercedes-Benz Strategy

• Provide the world’s best high-end automobiles

• Maintain industry leadership in technology and design

• Maximize profits while delivering consumer and environmental benefits

Motivations for Change

• Maintain profitability• Meet environmental mandates

– Recycling laws– Fuel efficiency

• Balance the competing mandates while still achieving profitability– Increased fuel efficiency leads to decreased

recyclability

Body In Weight Design Proposal• Production volume: 50,000 per year

• Materials Selection:– Aluminum Roof– Steel Quarter Panel Inner– SMC Quarter Panel Outer– Aluminum Floor

Base Case Comparison

New Design Difference

Total Weight 2685.6 lbs -425.4 lbs

BIW Cost $2128 -$221

Mileage 23.1 MPG +1.5 MPG

Recyclable Material 66.2% -3.4%

BIW Cost vs. Vehicle Weight

2600

2650

2700

2750

2800

2850

2900

2950

3000

3050

3100

3150

1500 2000 2500 3000 3500 4000

BIW Cost ($)

Veh

icle

Wei

gh

t (l

bs)

Vehicle Weight vs. Fuel Efficiency

21.40

21.60

21.80

22.00

22.20

22.40

22.60

22.80

23.00

23.20

23.40

2600 2700 2800 2900 3000 3100

Vehicle Weight (lbs)

Fu

el E

ffic

ien

cy (

mp

g)

Fuel Efficiency vs. Recyclability

58

60

62

64

66

68

70

72

21.5 22.0 22.5 23.0 23.5

Fuel Efficiency (MPG)

Re

cy

cla

bili

ty (

%)

Sensitivity Analysis: Production Volume

1000

1500

2000

2500

3000

3500

4000

4500

1 6 11 16 21 26 31 36 41 46 51

Materials Selection Case #

BIW

Cos

t ($) 40K/yr

50K/yr

80K/yr

Sensitivity Analysis: Al Prices

1600

1800

2000

2200

2400

2600

2800

3000

3200

3400

3600

1 6 11 16 21 26 31 36 41 46 51

Materials Selection Case #

BIW

Co

st (

$)

Al at $1.10

Al at $1.50

Al at $1.75

Design Conclusions

• Increased fuel efficiency with a slight reduction in recyclability

• Robust results protect company from the unexpected

• Maintains profitability

• Preserves technological edge

Extras

Change in Profit with Changing Al Prices

-1000

-750

-500

-250

0

250

500

750

1000

1250

1 6 11 1 2 2 3 3 4 4 51

Materials Selection Case #

Cha

nge

in P

rofi

t pe

r V

ehic

le (

$) Al at $1.10

Al at $1.50

Al at $1.75

Extras

Changes to Yearly Profits with Production Volume

-6.E+07

-4.E+07

-2.E+07

0.E+00

2.E+07

4.E+07

6.E+07

1 6 11 1 2 2 3 3 4 4 51

Materials Selection Case #

Ch

ang

e to

Yea

rly

Pro

fit

40K/yr

50K/yr

60k/yr

ExtrasRecycle % and Change in Profit

-1000

-500

0

500

1000

1500

59 60 61 62 63 64 65 66 67 68 69 70

Recycle %

Cha

nge

in P

rofi

t pe

r V

ehic

le (

$)

Extras

Recycling Percentages by Case

596061626364656667686970

1 6 11 16 21 26 31 36 41 46 51

Materials Selection Case #

Per

cen

t R

ecyc

led

Thoughts

• Revamp current recycling/fuel efficiency laws– Counterproductive

– Provide Mercedes-Benz with a clearer objectives

• Require a standardized way to calculate recycling percentages– Expectations too high for total car

– Reasonable for body in white